Walgreens is struggling to deter shoplifting at its stores, according to CEO Tim Wentworth, who described it as "a hand-to-hand combat battle still, unfortunately."
Wentworth spoke to analysts during a first-quarter earnings call on Friday, Business Insider reported. He said the Illinois-based retailer is taking "creative" steps to address the issue.
"When you lock things up, for example, you don't sell as many of them," BI reported. "We've kind of proven that pretty conclusively."
Walgreens executives have previously mentioned that missing inventory has hurt profits.
Other retailers are testing ways to prevent shoplifting, BI reported. At Walmart, employees can use an app to unlock items on shelves. Walmart and T.J. Maxx are trying body cameras for some employees.
Walgreens is in a multi-year effort to revive its retail business. It announced in October it would close 1,200 stores across the U.S. over the next three years to try to recover from financial struggles that include billions of dollars in losses.
Walgreens has 8,500 stores in the U.S. and has struggled with operational costs as well as falling reimbursement rates for prescription drugs and increased competition from competitors like Amazon, Walmart and Target. Other drug store chains, including CVS and Rite Aid, have closed hundreds of stores in recent years for some of the same reasons.
The company is testing new systems to lure and keep customers, like a digital check-in for prescription pick-up, Wentworth said.
Walgreens stock closed up over 27% after it announced better-than-expected results for the period that ended in November. Wentworth credited the company's "disciplined execution."
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